I always see how do the people that work for non-profit organisation make money. Not for the events their making but for their personal lives... Do they have a second job or are they getting money from donations, publicity, etc... And is there a law to limit their money or they grab as much as they can?
How does a non-profit organisation make money?
- Thread starter numaiomul
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Easy, do like the volunteer youth organization N4F (hyperion) and start up your own software company, pouring loads of state money into this new company, and then reaping the benefits for yourself.
No, I'm not kidding, that's a true story about a norwegian "volunteer" organizaation, where some people that never even finished high school and are already sucking money out of the system, find more ways to do it through "volunteer" work. Lately they've had to cut down on some of the activity for the youth, but that doesn't mean they can't spend quite a lot of money on exclusive food, wine and international travels.
No, I'm not kidding, that's a true story about a norwegian "volunteer" organizaation, where some people that never even finished high school and are already sucking money out of the system, find more ways to do it through "volunteer" work. Lately they've had to cut down on some of the activity for the youth, but that doesn't mean they can't spend quite a lot of money on exclusive food, wine and international travels.
I worked for a non-profit organization for a little while, they take in money through donations, membership fees, event ticket prices, event fund-raising etc. This money sits in a bank account and is used to finance group operations and pay employees. Basically the only difference is that they strive for a neutral balance, obviously keeping some cash on hand for emergencies or bad years, but spending what they take in on the group and their endeavors.
It all depends on the organization. If it's a non-business type then it's usually via government funding programs, private donations, and fund raising events.
However, if it is a business style orginazation, like a credit union, profits are kept very low. If they stray too far to the high side, the money is usually given back to the membership.
However, if it is a business style orginazation, like a credit union, profits are kept very low. If they stray too far to the high side, the money is usually given back to the membership.
NPO's just can't MAKE money. they can pay their employees and pay any other bills, they just can't accumulate profits.
this is different from a business, that SHOULD not only be paying employees and bills, but also accumulating assets and expanding.
this is different from a business, that SHOULD not only be paying employees and bills, but also accumulating assets and expanding.
Non-profit doesn't mean that the organization doesn't handle money, nor does it mean that they don't have paid staff. If it was all volunteers, most non-profits wouldn't be able to fulfill their mandates; volunteers can't devote the same time or skill to a task that a paid employee can.
It is entirely true that most paid administrators of nonprofits are overpaid and a drain on the society's resources, however.
It is entirely true that most paid administrators of nonprofits are overpaid and a drain on the society's resources, however.
Buildings used as churches need maintenance and have bills to pay. Such expenses are where portions of offering goes, in addition to salaries to people at the church, such as Pastors or secretaries. I would hypothesize their pay is assigned by an organizational superior within that church, such as its Elders, or perhaps the Group, Union or theology the church belongs to, such as Presbyterian, or Mennonite Brethren.
This is exemplary behavior of non-profit organizations.
This is exemplary behavior of non-profit organizations.
I worked for an NPO that was basically a daycare for people 18 and older.numaiomul said:
How it worked was we charged $35 or so per client per day to whoever was responsible, whether it was the state or an individual, which covered transportation to and from us(whether they needed it or not) two meals, and about 10 hours of supervision, depending on when they got there. We all got paid minimum wage except the supervisor, don't know what she got.
Anyway, we lost money that way, which was covered by government grants that would bring us up to 0$ at the end of the year.
It sounds like a waste of govt. money at first, but we were the only thing keeping all those people out of nursing homes, so it was probably overall saving them money.
It depends on the organization. They are generally supported in part by government aid. They also constantly apply for grants from various philanthropic organizations. They hold fund raisers of their own. In order to control costs, many non-profit organizations make extensive use of volunteers and people who work for a fraction of what they could make elsewhere. CASA Amarillo, an organization that acts as the advocate for children during various legal proceedings, for example gets money through fund raisers, grants and direct donations and fund raisers. Of the nearly 100 employees only the core office staff of less than a dozen people actually get paid.